QMI Agency

Nearly 40% of Canadians cited the need for extra cash and a desire to stay sharp as reasons for wanting to start their own business when they retire, a new study says.

And a whopping 81% say they plan on working in some capacity during their retirement.

The study, by BMO Financial Group, was published Saturday.

"It's clear that many Canadians are looking to generate additional income during their retirement years," Marlena Pospiech, a spokeswoman for BMO, said in a statement. "People are living longer than ever before so, for an increasing number of Canadians, retirement savings may need to last more than 25 years."

Pospiech cited other reasons for wanting to work while retired.

She points to the the decline in employer-sponsored defined registered pension plans and reforms to government pension plans.

"With the decline in employer-sponsored defined registered pension plans and reforms to government pension plans, there's now a greater need for people to supplement their income during retirement to compensate for that income gap," Pospiech. This is particularly true for those who haven't been saving aggressively for retirement through retirement savings vehicles such as RRSPs and TFSAs."